Buffett's Latest Bargain: Berkshire Hathaway

Actuarially speaking, Warren Buffett may be nearing the end of his 47-year tenure at Berkshire Hathaway. The shares are trading as if he's already gone.

For all the adulation he receives, Warren Buffett isn't getting credit where it arguably counts the most: his company's share price. Berkshire Hathaway's Class A shares trade around $128,000 a share. While that's a big number, it's less than 1.2 times the company's book value of $111,718 per share, as of Sept. 30. Berkshire's Class B shares (worth 1/1,500 of the A) fetch around $85.

Berkshire looks appealing because the stock's price/book ratio is near the bottom of its 10-year range and just above a threshold of 1.1 times...